rate of food inflation in India fell to the lowest level in a year and a half

rate of food inflation in India fell to the lowest level in a year and a half since the monsoon rains increased crop production and prices.

An index that measures wholesale prices of agricultural products, including lentils, rice and vegetables prepared by the Ministry of Trade rose 8.6 percent in the week ended Nov. 20 last year, a report showed today New Delhi. He won 10.15 percent the previous week.

"The general trend of decline in food prices is due to good agricultural production due to the adequate monsoons," said Dharmakirti Joshi, chief economist at Mumbai-based Crisil Ltd., India's unit of Standard & Poor's , before the report.

The country received more rain in three years in the monsoon season from June to September, helping to stimulate agricultural production and earnings from the top of the food prices. Reserve Bank of India Governor Duvvuri Subbarao, which raised interest rates on November 2 for the sixth time this year, has said the central bank may refrain from promoting them for three months.

Today's data food inflation is the first time the rate has fallen below 10 percent since May 2009.

The central bank predicts the benchmark wholesale-price inflation may drop to 5.5 percent on March 31, 8.58 percent in October.

However, India's monetary policy aims to ensure "that the expectations are anchored," said Deputy Governor Reserve Bank Top Gokarn yesterday in New Delhi. "We will not allow the pressures of food translates into bigger, broader inflationary pressures and that the economy is reaching its capacity limits, the risk is high. We must act accordingly."

Wheat production in India may exceed 82 million metric tons due to favorable weather, the State Directorate of Wheat Research, said yesterday.

The index reading for the week was 180.5 compared to 180.1 last week.